The Wagamama owner has revealed that an approach for the business has been made by Wheel Topco, the owner of PizzaExpress, which could signal a bidding war for the restaurant group.
As of yet no written or verbal proposals relating to a possible offer have been tabled by Wheel Topco, according to TRG.
“There can be no certainty that an offer by Wheel Topco will be made for the Company, nor as to the terms on which an offer might be made,” says TRG.
“Accordingly, shareholders are advised to take no action at this time with regard to the information request received from Wheel Topco.
“If any proposal is provided by Wheel Topco, the Board of TRG will carefully consider its terms, in conjunction with its advisers.”
Earlier this month a deal was struck between TRG and private equity house Apollo Funds to purchase the business in a deal that valued each of the company’s shares at 65p. The acquisition gave an enterprise value of £701m for the business and a multiple of around nine times TRG’s adjusted EBITDA for the 12 months ended 2 July 2023.
The proposed deal had been described by some investors as undervaluing the business.
Speculations Rise Over Potential Bids for TRG
There’s a buzz in the air as the value of The Restaurant Group (TRG) has soared to a whopping £100 million. This sudden surge has sparked a flurry of speculation that more bids might be on the horizon for TRG. It’s an exciting time, and we’re all waiting with bated breath to see what the future holds for this thriving company.
The PizzaExpress Connection
Adding to the intrigue is Allan Leighton, the chairman of PizzaExpress, who has a fascinating history with Wagamama. For those who may not know, Leighton previously held the reins as the chairman of the popular restaurant chain. He played a pivotal role in its sale to TRG back in 2018. It’s a connection that adds another layer of interest to the unfolding story.
PizzaExpress Debt Levels Take a Positive Turn
Earlier this year, in June, PizzaExpress shared some good news. The company announced that its debt levels had significantly improved. They were now half of what they were under its previous owner, Hony Capital. It’s a promising development that has undoubtedly contributed to the current wave of optimism surrounding the company.
As we continue to watch this space, one thing is clear – the restaurant industry is full of surprises, and we can’t wait to see what’s next!
Photo: Ian Muttoo, CC BY-SA 2.0, via Wikimedia Commons
